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Reckless Stock-Market Leverage Intoxicates Politicians

Reckless Stock-Market Leverage Intoxicates Politicians The sudden bloodletting that leveraged currency speculators experienced when the Swiss National Bank yanked the cap on the franc should have been a warning: central-bank promises that everything is under control are meaningless. And because of leverage, innumerable trading accounts blew up in a matter of moments. Leverage acts like […]

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China’s Monumental Debt Trap—-Why It Will Rock The Global Economy

China’s Monumental Debt Trap—-Why It Will Rock The Global Economy Bloomberg News finally did something useful this morning by publishing some startling graphs from McKinsey’s latest update on the worldwide debt tsunami. If you don’t mind a tad of rounding, the planetary debt total now stands at $200 trillion compared to world GDP of just $70 […]

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oftwominds-Charles Hugh Smith: What Happens When Cash Is No Longer Trash?

oftwominds-Charles Hugh Smith: What Happens When Cash Is No Longer Trash?. Those who actually create value as opposed to chasing yield with nearly-free money will actually have some traction once the swamp of excess liquidity drains. When those closest to the money spigots of the Federal Reserve can borrow billions for next to nothing, cash–laboriously […]

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oftwominds-Charles Hugh Smith: In Uncharted Waters

ftwominds-Charles Hugh Smith: In Uncharted Waters. What I see as extremes that must necessarily end badly, others see as mere extensions of recently successful policies and trends. A long-time reader recently chastised me for using too many maybe’s in my forecasts. The criticism is valid, as “on the other hand” slips all too easily from qualifying a position […]

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Olduvai IV: Courage
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